How many releases is a very different number than how much profit. Only a few of Microsoft’s releases likely account for a sizable percentage of the entire industry’s profits in a given year. The fact is that investors saw dollar signs, and the industry expanded to a level that the market doesn’t actually sustain. How many metroidvanias do you want to play in a given year? And given that Animal Well and Prince of Persia: The Lost Crown came out this year, how likely are you to play Tales of Kenzera: Zau after you’ve bought and played those? Mass layoffs are not a good thing, but it’s a mathematical consequence of how much companies are permitted to expand relative to what people actually buy.
I know it’s not an option for consoles. Since the 7th gen, it was always moving in this direction. It’s probably one of dozens of reasons that PC overtook consoles in market share.
A friend of mine bought one at MSRP to add to his collection along with the likes of Anthem and Babylon’s Fall. He also picked up Suicide Squad for this reason, but he found that he unironically really enjoys that game while it’s still operational.
Lots of people feel this way. This thing is going to come in at a price around $650 or $700, sell pretty much exclusively to the people who need the latest high-end PlayStation regardless, and then free up a bit of inventory of second hand vanilla PS5s. It’s a way to justify keeping prices high, because they can’t afford to lower them.